Sensex opened the week at 31269, made a high of 31332, low of 31132 and closed the week at 31262. Thus it closed ending flat for the week. At the same time the Nifty opened the week at 9655, made a high of 9705 low of 9619 and closed the week at 9681. Thus the Nifty closed the week with a gain of 36 points. Indian markets edged lower on Friday, in line with their Asian peers as the polls in the United Kingdom (UK) hinted a loss for the British Prime Minister Theresa May's ruling Conservative party that could result in a hung Parliament and delay Brexit talks.

GOLDEN RATIO TARGET ACHIEVED.

The Bulls are in no mood to let go off this opportunity of tightening the screws on the Bears and hence are pouncing on every small dips to create long positions. Every minor decline gives a hope of a Correction but the Correction continues to elude not only the Bears but also market participants who have not been able to participate in the current rally and are sitting on the sidelines. This week, the indices achieved golden ratio target of the intermediate Rounding Bottom formation which was at Sensex 31153 and Nifty 9630.

TECHNICALLY SPEAKING.

MACD despite being in positive zone continues with its Sell signal. Price ROC continues to remain positive and in Buy mode. RSI (75) still suggests Bullish momentum. As long as the contract trades above this level, the outlook for the session will remain bullish. Traders with a short-term perspective can buy the contract in dips with a stop-loss at 9,580 levels. Nifty can continue its up move on a strong rally beyond its immediate resistance level of 9,700. Next key resistances are at 9,720 and 9,745 levels.Resistance for the index lies in the zone of 9730 to 9750. If the index manages to close above these levels then the index can move to the levels of 9880 to 9900.Key supports below 9,650 are at 9,620 and 9,580. Strong plunge below 9,580 can pull the contract down to 9,550 and 9,500 levels.

This week, the indices tested the short term average of 22dma Nifty – 9303close above it. The indices continue to remain above the medium term average of 55dma Nifty – 8900 but above the long term average of 200dma Nifty –8720. Thus the trend in the long term has remained bullish whereas the trend in the medium term timeframe continues to remain uptrend.

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